South Korea's Financial Services Commission (FSC) will start taxing transactions with non-fungible tokens (NFTs) from 2022, FSC Vice Chairman Doh Kyu-sang has said.
According to him, NFT tokens will be taxed according to the current tax rules for virtual assets, Forkast News reports.
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The FSC has stressed not all NFT tokens will be classified as virtual assets and therefore will be taxed. Only NFTs issued on a large scale and intended for investment or payment will be subject to taxation.
As of January 1 next year, a series of amendments to legislation introducing a tax on crypto transactions will come into force in South Korea. Starting next year, residents of the country will have to pay a 20% tax on income from transactions involving digital assets exceeding 2.5 million Korean wons ($2,100 at the exchange time of November 23).